COURSE NAME: INTERMEDIATE ACCOUNTING I

GROUP ASSIGNMENT
MARKS: 15 MARKS
Part one: Questions
1. Do the following events represent business transactions?
Explain your answer in each case.
a) A computer is purchased on account.
b) A customer returns merchandise and is given credit on account.
c) A prospective employee is interviewed.
d) The owner of the business withdraws cash from the business for personal
use.
e) Merchandise is ordered for delivery next month.
2. Name the accounts debited and credited for each of the following
transactions.
a) Billing a customer for work done.
b) Receipt of cash from customer on account.
c) Purchase of office supplies on account.
d) Purchase of 15 gallons of gasoline for the delivery truck.
3. Indicate whether each of the items below is a real or nominal account and
whether it appears in the balance sheet or the income statement.
a) Prepaid Rent.
b) Salaries and Wages Payable.
c) Inventory.
d) Accumulated Depreciation—Equipment.
e) Equipment.
f) Service Revenue.
g) Salaries and Wages Expense.
h) Supplies.

Lecturer: Ahmed Yasin Beder International University

BRIEF EXERCISE
1) Agazzi Repair Shop had the following transactions during the first
month of business as a proprietorship. Journalize the Following
transactions.

Aug. 2: Invested $12,000 cash and $2,500 of equipment in the business.

7: Purchased supplies on account for $500. (Debit asset account.)

12: Performed services for clients, for which $1,300 was collected in cash
and $670 was billed to the clients.

15: Paid August rent $600.

19: Counted supplies and determined that only $270 of the supplies
purchased on August 7 are still on hand.

2) Assume that on February 1, Procter & Gamble (P&G) paid $720,000

in advance for 2 years’ insurance coverage. Prepare P&G’s February 1
journal entry and the annual adjusting entry on June 30.
3) Side Kicks has year-end account balances of Sales Revenue $808,900;
Interest Revenue $13,500; Cost of Goods Sold $556,200; Administrative
Expenses $189,000; Income Tax Expense $35,100; and Dividends
$18,900. Prepare the year-end closing entries.

Lecturer: Ahmed Yasin Beder International University

Question 4
UHURA RESORT
TRIAL BALANCE
September 30, 2020
Debit Credit
Cash $19,400
Account Receivable $5,500
Inventory $2,000
Prepaid insurance $4,500
Equipment $120,000
Accumulated depreciation on equipment $12,000
account payable $10,000
Un earned fees $20,000
Common stock $100,000
Dividend $9,000
Fees earned $69,000
salaries expense $40,000
utilities expense $5,000
office expense $5,600
Totals $211,000 $211,000
OTHER DATA

a) Depreciation on equipment $1,000.

b) Insurance of $600 has been expires during the year.
c) Service provided but not billed to customers $3,000.
d) Salaries accrued but not paid $1,500.
e) Unearned fees of $6,000, was earned prior to September 30.
Instructions
(a) Journalize the adjusting entries on September 30.
b) Prepare an adjusted Trial Balance on September 30.

Lecturer: Ahmed Yasin Beder International University

Group Members:
S/N0 FULL STUDENT NAME ID NO
1
2
3
4

Lecturer: Ahmed Yasin Beder International University